Dow futures drop 100 points after strong jobs report likely to keep Fed in long walks

July jobs report beat expectations

The US economy added many more jobs than expected last month. On Friday, the US government said 528,000 jobs were added in July, easily exceeding Dow Jones’ estimate of 258,000 jobs.

Sure enough, average hourly earnings rose 5.2% year over year – well above expectations. This could be seen by the market as a sign that inflationary pressures remain strong.

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Fred Ambert

Elon Musk thinks we are past the peak of inflation

Elon Musk said he believes we are past the peak of inflation, and expects a mild recession 18 months into the future.

Musk Comments It was stated at the Tesla 2022 shareholder meeting, which was held on August 4.

“We’ve gotten a fair amount of insight into the direction of prices for things over time because when you make millions of cars, you have to buy the goods several months before you need them,” he said.

– Carmen Renick

Amazon acquires iRobot in $1.7 billion deal

Amazon will gain iRobot For $61.00 per share, the consumer robot company announced Friday. The All cash transactions It has an estimated value of $1.7 billion, including iRobot’s net debt.

iRobot shares have been paused in the news. The selling price of $61 per share is a 22% premium over Thursday’s closing price of $49.99. Amazon stock is up 0.2% in pre-market trading.

Written by Michelle Fox

DoorDash rises after standard commands

A Dordash delivery person rides his bike in the rain during the coronavirus (COVID-19) pandemic in the Manhattan borough of New York City, New York, United States, November 13, 2020.

Carlo Allegri | Reuters

DoorDash shares rose more than 10% in pre-market trading on Friday after the company announced Quarterly results that exceed expectations After the market closes on Thursday. The food delivery service said orders grew 23% year-over-year in the most recent quarter, and revenue increased 30%.

She added that the company expects weaker consumer spending in the second half of the year.

– Carmen Renick

Oil is set for a sharp weekly loss

Oil prices fell moderately during Friday morning trading on Wall Street and are heading for sharp weekly losses. Concerns about slowing demand have driven prices lower in recent sessions.

West Texas Intermediate crude futures contractsThe US oil benchmark is down 10.5% during the week, while the international benchmark is down Brent crude It fell 14.5%.

– Peppa Stevens

Bitcoin and Ether on track for worst week since July 1

Cryptocurrencies are down this week after a rough start to the month. Bitcoin and Ether are down 3% week to date and are on track to post their first negative week in five.

The performance will also be the worst weekly decline since July 1, when Bitcoin lost 8.71% and Ether fell 13%.

– Carmen Renick

Plunge Warner Bros

Leslie Grace attends the Warner Bros. premiere. “The Suicide Squad” at The Landmark Westwood on August 02, 2021 in Los Angeles, California.

Axel / Power Griffin | Magic movie | Getty Images

Stifel raises the S&P 500 target in the second half

Barry Bannister of Stifel raised his S&P 500 target for the second half to 4400 from 4200, noting that he continues to favor cyclical growth stocks in sectors like software and media.

Here are two reasons Bannister gave for the target bump:

  • “The heavy selling of the S&P 500 in the first half of ’22 continues to be reversed.”
  • “The S&P 500 is also discounting the S&P 500 EPS on a negative annual basis in 2022, but we see 2022 EPS carrying its own equity.”

Bannister’s new target points to a 6% rise from Thursday’s close.

Fred Ambert

European shares stabilized ahead of the main US jobs report

European markets It was flat on Friday morning as investors tracked corporate earnings and awaited the key jobs report in the US.

pan europe Stokes 600 It didn’t change much in the early trade. Autos gained 0.8% while insurance stocks fell 0.8%.

Earnings continue to drive individual stock price action in Europe. Allianz, Deutsche Post, London Stock Exchange and WPP were among the companies that reported before the bell on Friday.

– Elliot Smith

Asia markets shake off concerns about military tensions over Taiwan

Markets in the Asia-Pacific region rose on Friday Investors have shrugged off concerns about Chinese military exercises near Taiwan, which come on the heels of US House Speaker Nancy Pelosi’s visit to the self-ruled island this week.

MSCI’s broadest index of Asia Pacific shares outside Japan rose 0.74%. The Shanghai Composite in mainland China rose 0.28% and the Shenzhen component increased by 0.64%.

Taiwan’s Taiex jumped more than 2%, with chip maker TSMC up 2.8%.

Investor says lower number of key jobs does not mean weak economy

If Friday’s jobs report shows that the US economy added fewer workers in July than the previous month, that is not necessarily a sign of economic weakness, according to Brad MacMillan, chief information officer at the Commonwealth Financial Network.

“If we see a drop in employment, even at the expected number, it is likely due to a shortage of workers, rather than a sudden shock to labor demand,” Macmillan said in a note. “With demand rising, what matters here is the availability of labor.”

– Yun Lee

Some on Wall Street don’t think the price hike can continue

The Fed’s commitment to reduce inflation as well as allay recession fears led to a market rebound. The Standard & Poor’s 500 It is now 14.2% above the 52-week low of 3,636.87 from June 17. The benchmark is also coming off its best month since November 2020, gaining more than 9% in July.

However, some on Wall Street doubt that the rally can continue for much longer. Max Kettner, chief multi-asset strategist at HSBC, said: Back is “wish” He will need to see further re-pricing of interest rate hike expectations and another sharp fall in real yields to believe that.

widely followed Mike Wilson in Morgan Stanley This rally is also called short-lived as corporate profits begin to decline.

Consumer discretion leads gains, biggest slowdown in energy sector this week so far

Six of the 11 S&P 500 sectors have been in the green so far, led by the discretionary consumer, which is up 2.9%.

The most negative sector this week was the energy sector, which is down more than 8% and on track for its worst week since June 17. The decline in energy names came amid a drop in oil prices. West Texas Intermediate crude is down more than 10% this week, on track for its worst week since April.

– Yun Lee